New 50% tax on rezoned rural land – The Victorian Government has made a further announcement about a new windfall gains tax, WGT, which was first announced as part of the 2021-22 Victorian Budget. It is proposed that a new windfall gains tax will be applied to land rezoned by a planning scheme decision made on or after 1 July 2023 where the decision results in an increase in the value of the land by $100,000 or more. The effective rate of tax will be up to 50% of the value uplift.
Legislation to support this measure is yet to be passed by Parliament.
This is another example of government raping rural and regional Victorians. May I suggest you contact your local member of Parliament and voice your concerns before it is too late or contact Richard Riordan member for Pollworth Victoria here ri*************@****************ov.au/
It works like this: When rezoning occurs, and provided no exemption applies, the taxpayer will be liable for WGT on the taxable value uplift, calculated as the difference in the capital improved value of the land before and after the rezoning. The tax comes into effect from 1 July 2023 and will operate as a charge on the land. Where a property subject to WGT is subdivided the WGT will be allocated proportionately to the new subdivided lots.